While banks haven’t passed on negative rates to retail accounts, they’ve been willing to do so for corporate ones. U.S. banks will preserve their spreads as much as possible by doing the same. I suspect this expectation will drive some unique corporate behavior as they attempt to reduce cash balances held in the U.S. to avoid potentially being charged to park their money at a bank.
Leading Up to Negative Rates
While banks haven’t passed on negative rates to retail accounts, they’ve been willing to do so for corporate ones. U.S. banks will preserve their spreads as much as possible by doing the same. I suspect this expectation will drive some unique corporate behavior as they attempt to reduce cash balances held in the U.S. to avoid potentially being charged to park their money at a bank.